Brad owns a cash value life insurance policy. Last year, the cash value increased by $300. Brad received $100 in policyowner dividends on the policy last year. Brad was the beneficiary named in his grandmother's $50,000 life insurance policy. When she died this past year, Brad received $50,000. How much taxable income relating to life insurance must Brad report for federal income tax purposes?

Question

Business

Emma Roberts

6 August, 09:34

Brad owns a cash value life insurance policy. Last year, the cash value increased by $300. Brad received $100 in policyowner dividends on the policy last year. Brad was the beneficiary named in his grandmother's $50,000 life insurance policy. When she died this past year, Brad received $50,000. How much taxable income relating to life insurance must Brad report for federal income tax purposes?

+3

Answers (1)

Know the Answer?

Fitzpatrick · Answer 1

Taxable income that are related to insurance that brad should report for income tax motives is $0

Explanation:

Taxable income that are related to insurance that brad should report for income tax motives is $0

Usually, life insurance benefits that one receives as a payee because of the insured person's death are not included in income and one shouldn't have to notify them. Every interest you obtain, however, is taxable and must be reported as earning interest.